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World > Africa > Burkina Faso > Economy (Notes)

Burkina Faso - Economy (Notes)


ECONOMY
Burkina Faso is one of the poorest countries in the world, with a per capita gross domestic product (GDP) of $424. More than 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services. Drought, poor soil, lack of adequate communications and other infrastructure, a low literacy rate, and an economy vulnerable to external shocks are all longstanding problems. The export economy also remains subject to fluctuations in world prices.

Burkina remains committed to the structural adjustment program it launched in 1991, and it has been one of the first beneficiaries of the World Bank/International Monetary Fund (IMF) debt-relief and poverty reduction programs for highly indebted poor countries. At least 20% of the government budget is financed from international aid, and the majority of infrastructure investments are externally financed. Growth rates had been more than 5% from the late 1990s through 2003.

Many Burkinabe migrate to neighboring countries for work, and their remittances provide a contribution to the economy's balance of payments that is second only to cotton as a source of foreign exchange earnings. Political and economic problems in Cote d'Ivoire have had a direct impact on this source of revenue for millions of Burkina households. The military crisis in neighboring Cote d'Ivoire negatively affected trade between the two countries, due to the year-long closure of the border between Burkina Faso and Cote d'Ivoire from September 2002 to September 2003. Goods and services, as well as remittances, continue to flow from Burkinabe living in Cote d'Ivoire, but they have been rerouted through other countries in the region, such as Togo, Ghana, and Benin. Commercial and personal traffic across the border is slowly rebuilding steam.

Burkina is attempting to improve the economy by developing its mineral resources, improving its infrastructure, making its agricultural and livestock sectors more productive and competitive, and stabilizing the supplies and prices of food grains. Staple crops are millet, sorghum, maize, and rice. The cash crops are cotton, groundnuts, karite (shea nuts), and sesame. Livestock, once a major export, has declined.

Manufacturing is limited to cotton and food processing (mainly in Bobo-Dioulasso) and import substitution heavily protected by tariffs. Some factories are privately owned, and others are set to be privatized. Burkina's exploitable natural resources are limited, although deposits of manganese, zinc, and gold have attracted the interest of international mining firms.

A railway connects Burkina with the port of Abidjan, Cote d'Ivoire, 1,150 kilometers (712 mi.) away. Due to the closure of the border with Cote d'Ivoire, this railway was not operational between September 2002 and September 2003, but cargo and limited passenger service are now offered. Primary roads between main towns in Burkina Faso are paved. Domestic air service and flights within Africa are limited. Phones and Internet service providers are relatively reliable, but the cost of utilities is very high.


Facts at a Glance: Geography - People - Government - Economy - Communications - Transportation - Military - Climate - Current Time - Ranking Positions - CFA Franc BCEAO Exchange Rates
Notes and Commentary: People - Economy - Government and Political Conditions - Historical Highlights - Foreign Relations - Relations with U.S.



Facts at a Glance
Geography
People
Government
Economy
Communications
Transportation
Military
Climate
Current Time
Ranking Positions
CFA Franc BCEAO Exchange Rates


Notes and Commentary
People
Economy
Government and Political Conditions
Historical Highlights
Foreign Relations
Relations with U.S.





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